Apple Probably Killing The iPhone 3G

We anticipate the company will cut the price of its 16 GB iPhone 3GS to $99 or below, adding its new device at the high-end $199 or $299 price points. (It's also possible that Apple will use its new hardware as the basis for all of its 2010 iPhones.)

Because it doesn't have enough memory to support the iPhone OS 4 multitasking feature that Apple will roll out in a few weeks -- a feature we think Apple will promote heavily to put it on the same feature level as Google Android.

So with last year's new hardware getting cheaper to make, it makes sense that Apple would replace it at the low end of Apple's lineup with something more powerful.